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State Name: Connecticut
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State Name lower underscore: connecticut
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State Abbreviation: CT
State Abbreviation Lower: ct

MND NewsWire features plain and simple interpretations of industry related data and events written in a manner that maintains the interest of random readers while still catering to the perspective of a housing market professional.

Fannie Mae has made changes to its HomeReady
mortgage program that allows borrowers to obtain a mortgage with as little as a
3 percent downpayment. The enhancements
change income maximums and eligibility criteria and alter several requirements
for the program's mandatory homeownership education.

Changes that go into effect
immediately include:

Income limits have been raised to
100 percent of area median income (AMI) in all areas except for low income
market tracts which have no limit. The
company says this will expand access to affordable credit and also make it easier
for lenders to determine eligibility for the loans.

The occupant borrower will now be
allowed to own other residential properties.

Homeownership education courses that
fulfill the HomeReady mortgage requirement have been expanded to include
one-on-one pre-purchase advising from HUD-approved providers. Fannie Mae will offer lenders a $500 credit
to encourage borrowers to take advantage of this option. Homebuyer education will continue to be
available through Framework, Fannie Mae's education partner.

The requirement for homeownership
education has been removed for limited cash-out refinances and borrowers for
loans secured by two- to four-unit properties will no longer be required to
take landlord education although homeownership education will remain a
requirement.

The Seller Guide announcing the
above changes also noted that Fannie Mae expects to make additional
enhancements later this year, including:

Allowing a maximum loan-to-value up
to 97 percent on limited cash-out refinance transactions in Desktop Underwriter
(DU) if the existing mortgage is owned or securitized by Fannie Mae.

Expanding current HomeReady
eligibility for buydowns and adjustable-rate loans to include three- to four-unit
properties.

Adding additional incentives for the
one-on-one homeownership counseling implemented with the current changes.

Fannie Mae said it will continue to
add enhancements to help the HomeReady program to expand access and to credit
responsibly and promote successful homeownership.

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